(a) A bank may not give preference to a depositor or creditor by pledging any of the assets of a bank as collateral security except

Terms Used In Alaska Statutes 06.05.260

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • bank: means a person doing a banking business, including persons subject to the law of this or another jurisdiction. See Alaska Statutes 06.05.990
  • banking: means performing activities that
    (A) include, at a minimum, soliciting, receiving, or accepting money or its equivalent on deposit, whether the deposit is made subject to a check or is evidenced by a certificate of deposit, passbook, note, receipt, or other writing. See Alaska Statutes 06.05.990
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • loan: includes an extension of credit resulting from direct or indirect negotiations between a lender and a debtor. See Alaska Statutes 06.05.990
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • property: includes real and personal property. See Alaska Statutes 01.10.060
  • state: means the State of Alaska unless applied to the different parts of the United States and in the latter case it includes the District of Columbia and the territories. See Alaska Statutes 01.10.060
  • subsidiary: means a corporation in which a bank owns more than 50 percent of the voting power of the corporation either directly or indirectly through one or more other subsidiaries of the bank. See Alaska Statutes 06.05.990
(1) to the state to secure state funds, or to a municipal corporation or other public corporation, municipal utility or municipal utility board, or political subdivision of the state to secure its funds, and to the United States as may be required to make the bank a depository for United States funds;
(2) to secure a mortgage or deed of trust in connection with the purchase of banking premises as provided in property and banking premises” class=”unlinked-ref” datatype=”S” sessionyear=”2023″ statecd=”AK”>Alaska Stat. § 06.05.230, if the only property pledged is property purchased in the transaction;
(3) to a federal reserve bank or federal home loan bank in the manner required by the applicable laws, regulations, and rules of the federal reserve bank or federal home loan bank, as applicable;
(4) to a federally recognized tribe or a wholly owned subdivision or wholly owned subsidiary of a federally recognized tribe;
(5) to a business enterprise that is wholly owned by a federally recognized tribe;
(6) to an inter-tribal consortium as defined in 25 U.S.C. § 3202; or
(7) to a tribal organization as defined in 25 U.S.C. § 5304 .
(b)[Repealed, Sec. 102 ch 26 SLA 1993].
(c) A pledge, assignment, or transfer of any of the assets of a bank in violation of this section is null and void against the creditors of the bank.
(d) A bank may pledge the assets of the bank

(1) to a party to an interest rate swap agreement as collateral to secure the party’s financial risk arising out of the agreement; the bank may make the pledge on the same terms and conditions applicable to a bank chartered by the United States in a pledge of assets in an interest rate swap agreement;
(2) to allow the bank to enter into an interest rate swap agreement to manage the bank’s risk of fluctuating interest rates, but not for a purpose that involves a high risk of loss.
(e) In this section,

(1) “federally recognized tribe” means a tribe that the United States Secretary of the Interior recognizes as an Indian tribe under 25 U.S.C. § 5131 (Federally Recognized Indian Tribe List Act of 1994);
(2) “interest rate swap agreement” means an agreement in which one stream of future interest payments is exchanged for another stream of future interest payments.
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